New challenges are imminent for generic companies. Proposed amendments to Statement 300 were released on 29th March for 60-day public commentary. Once Gazetted, the changes will be effective immediately, so planning and identifying the impact of these changes should commence now.

Highlights of proposed changes:

  1. Target for Skills Development Spend for Generics – split of 6% target.

2.1.1.1 Training spend for black people – 3.5% for 6 points (across demographics)

2.1.1.2 Training spend for black students at higher education institutions – 2.5% for 4 points (no demographics)

This significantly impacts on the ability to achieve critical points in Skills Development for compliancy, particularly if the spend profile does not include the qualifying bursaries.

  1. Number of headcount targets for Learnerships, Internships and Apprenticeships have been split into Employed and Unemployed learners, with no double counting across the two. Opportunity to score points for unemployed learners in this category except for those on Learnerships, Internships or Apprenticeships, has been removed. Graduate interns therefore don’t qualify in this section either, as Internships are specifically defined as practical internships that require workplace experience in order to obtain a qualification.
  2. Limit on Informal training has been increased from 15% to 25% (this applies to unaccredited SKOP courses).
  3. QSEs need to meet all the priority elements in order to avoid discounting a level, of which Skills Development is one. On Agri QSE Codes, need to achieve at least 8 points and on QSE Codes, at least 10 points for Skills.

Focus going forward

  • Learnerships (employed and unemployed) and Practical Internships for unemployed
  • Bursaries at higher education institutions – spend can be claimed under 2.1.1.2 above
  • Bursaries at basic education institutions – spend can still be claimed under 2.1.1.1 above
  • Other spend that may have previously been claimed as a “bursary”, but where the institution was not established by or registered with the departments of basic or higher education can still be claimed, but only under 2.1.1.1 and this will fall into the learning programme category of either E or F, depending on its qualification alignment. Companies must be mindful of the max spend that can be claimed on this regard.
  • Absorption of learners – either through long term employment or continued training – planning is vital in securing these valuable points.

Skills Development remains a critical aspect to achieving compliance on the BBBEE scorecard. With effective planning, value add programmes can be very beneficial to your business and to staff morale. This element remains one of the most complex and time consuming to implement, particularly with the up and coming changes in the pipeline.

Outsource Asset, BBEE Transformation Agents, have been assisting clients with meaningful BBBEE solutions for more than a decade. Call them on 021-7834882 for a consultation or visit their website on www.outsourceasset.co.za